When you find your status as a good credit risk changing from positive to negative, and you go from being considered a “valued customer” to a “financial deadbeat” by your credit company, you know that your revolving credit is beginning to rapidly spin out of control.
Now, unless you take action very soon, your credit scores will begin to plummet. Once they do, you won’t be able to secure credit for large purchases like a home or a new car. In fact, you won’t even be able to get credit during an emergency, like a car accident or a collapse in your health or that of a family member.
One way, the ideal way to pay off debts, is to start earning more. But we are all now in an economy where hyperinflation has caused a national recession. With hyperinflation, companies cut costs by reducing employee hours and wages, often eliminating many workers entirely. However, despite a drop in income, prices keep rising. Hyperinflation is caused when the value of money falls in relation to the cost of goods and services.
Another way to pay off your debts is to call your charge account credit company and speak to their settlement department.
When you do speak to a representative who has the power to make decisions on your account, you can try the following 3 step negotiation strategy:
1. You can explain that you have fallen into indebtedness because of circumstances beyond your fault. You can mention the reduction of your hours at work or your forced pay cut or your layoff.
2. You can mention the common facts about hyperinflation. How wages can’t keep up with the price of goods and services because money has lost its purchasing power by a certain percentage.
3. You can ask for a reduction in your interest payments, a hold on your interest payments for a certain time, or a discount on your total balance.
Unfortunately, if you are refused an amenable debt settlement, then you are still stuck with your debt.
One of the best ways to pay off your debts, considering that you’re not likely to earn more soon and that the credit company will not work with you, may be to get a credit card debt consolidation loan that will completely pay off all your debts, restore your credit status, and give you a new lease on financial solvency.